The Greenvale Mining Ltd (ASX: GRV) share price has slipped into the red on Monday.
Greenvale shares are trading down today despite the company making an announcement on its maiden drilling program in NT.
Let's investigate further.
Image source: Getty Images
A quick recap on Greenvale Mining
Greenvale Mining is an international energy company. It is in the business of exploiting oil shale deposits.
The company owns the Alpha oil shale deposit in Qld and the Georgina Basin IOCG project in NT.
At the time of writing, Greenvale has a market capitalisation of $170 million.
What did Greenvale announce?
Greenvale advised that it was "on track" to start its "maiden diamond drilling program" at its Georgina Basin Iron Oxide Copper Gold (IOCG) project" by around 15 September.
The project is located in Australia's "East Tennant district", which was recently labelled as "one of Australia's 'hot spots'" as per the release.
Greenvale also announced that all site preparations are complete, and the field team is now in place.
From its preliminary studies, Greenvale has obtained "encouraging preliminary results" which point to "large-scale" IOCG deposits in a zone known as the "twin peaks".
This twin peaks section will be targeted by Greenvale's "initial phase of drilling". As such, the company has also made significant investment in the specialised mine equipment for drilling and the exploration camp. These factors demonstrate the company's "commitment to being a long-term player in broader East Tennant area", as per the announcement.
In addition to these updates, Greenvale also announced it has an "initial four diamond holes" planned across "Eastern and Western targets" at the site.
This coincides with a "high-resolution 12,168–line kilometre airborne, radiometric and geophysical survey" which Greenvale plans to start in the next few weeks.
Investors haven't bought the news on Monday, and have pushed the Greenvale Mining share price lower on the day.
Greenvale shares are now changing hands at 40.5 cents apiece, an almost 6% drop from the open.
What did management say?
Commenting on the announcement, Greenvale's managing director, Neil Biddle said:
Our initial program will focus on the large-scale magnetic and gravity targets which we call the 'Twin Peaks'. The recently completed ground-based gravity program has helped us to refine these targets, which will be tested initially by four deep diamond holes commencing in the middle of this month.
Greenvale Mining share price snapshot
The Greenvale Mining share price has posted a year to date return of 212%. This extends the previous 12 month's mammoth gain of 820%.
Both of these results have far outpaced the S&P/ASX 200 index (ASX: XJO)'s return of 25% over the past year by a country mile.
